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Maplecroft’s latest Country Risk Report for Canada provides in-depth analysis of the opportunities and challenges facing oil and gas investors in the country. The report will provide companies with the necessary insights they need to navigate and monitor political risks, the business environment, legal and regulatory developments, the human rights landscape and environmental concerns.

According to the report, Canada continues to present very low risks for investors – particularly in the oil and gas sector – and is forecast to do so for the foreseeable future. Low unemployment, stable political institutions and large reserves of natural resources have largely characterised the recent Canadian experience – especially in the resource-rich western provinces. The Conservative Party majority in parliament is forecast to remain strong until at least the 2015 election.

The revival of the Liberal Party, however, is beginning to alter the political risk landscape for investors. Following the election of Justin Trudeau as leader of party, there has been a renewal of support and a decline in backing for the Harper government in opinion polling. This translated into an astonishing electoral victory for the Liberal Party in the British Columbia election in May 2013. The uptick in support for the Liberal Party has increased risks for the oil and gas sector – a majority Conservative government after the 2015 federal election is now forecast to be less likely. However, the surge in Liberal support has also damaged the New Democratic Party (NDP), reducing risks for investors given the NDP’s largely hostile policy platform towards LNG exports, pipeline construction and fracking.

A fundamental shift in Canada’s environmental regulatory framework over the past two years – with the introduction of less stringent requirements for business – has reduced regulatory risks. Notably, these changes were enacted in June 2012 via Bill C-38 in sweeping reforms to the Canadian Environmental Assessment Act and the Fisheries Act, and amendments to many other pieces of legislation such as the National Energy Board Act.